US zinc secondary alloys prices dropped by 2-3¢/lb after three successive weeks of increases, amid falling LME Zinc prices.
LME Zinc cash offers closed at $1.2791/lb down from $1.297/lb last week while the official three-month LME Zinc contract declined by $30/mt from Feb 23 to $2,847/mt on Tuesday.
The weekly Davis Index for Zamak #2 dropped by 2¢/lb to $1.495/lb delivered US consumer. The index for Zamak #5 fell by 1.5¢/lb to $1.48/lb delivered, while both Zamak #3 and Zamak #7 moved down by 2¢/lb to $1.465/lb delivered.
ZA 8 and ZA 12 also decreased by 2¢/lb to $1.515/lb delivered and $1.535/lb delivered US consumer, respectively, while the index for ZA 27 slipped by 3¢/lb to $1.545/lb delivered.
The fundamentals of the zinc alloys market remain strong despite the softening prices this week. However, market participants believe that prices must settle down further to ensure healthy business and bring back some of the absent buyers.